The cryptocurrency market is one that has proven to be extremely volatile. Every sudden rise is seemingly accompanied by an equally precipitous swoon in value. The good news is that the market as a whole is much more lucrative than it was just a few years ago.
Those people who got in on the ground floor are likely enjoying their profits or looking to parlay them into even more. For those who are just getting involved, there is a way forward, but it takes a little bit more care and diligence to find some value.
The best way to find that value is to understand what will move the cryptocurrency market in one way or another. In that respect, it is just like any other sector of the market, as it is susceptible to outside forces for good and bad. It is also susceptible to scammers, such as those who would promise you big investment returns with little proof to back it up. That’s why IS Scam, which pinpoints these scammers, is a valuable resource for both crypto and Forex investors alike. When you’re investing in cryptocurrency, here are some of the things that you should be watching.
- Governmental reaction
If a government of a nation makes it difficult for cryptocurrency to be utilized, that certainly will put a cramp on its value, especially if there’s a possibility that others will copy. By the same token, a government that accepts crypto and boasts of how its use has actually been a financial boon to the country and its citizens will likely drive the value of the market up.
- Banks and financial institutions
Large, existing financial institutions like banks and credit card companies represent both the biggest opportunity and the greatest hindrance to cryptocurrency adoption. If these entities can peacefully co-exist with crypto, perhaps even adopting it in some form, values across the board should rise. By contrast, banks and credit card companies putting the clampdown on the buying of crypto by its customers, as has happened recently, will have an adverse effect for sure.
- Vendors on board
Something that is generally positive for cryptocurrency value is when large, well-known companies announce that they are accepting certain digital coins as currency. Whether it’s a restaurant chain or a hotel company or even an online retailer, these businesses help to legitimize cryptocurrency in the eyes of its customers.
- Trading platforms
Something that really gave a boost to cryptocurrency values was the announcement that several trading exchanges that deal with traditional assets like stocks or bonds would also be taking orders for digital coins. Whether that progress continues or stagnates will go a long way to determining the value of cryptocurrency in all its forms.
Keep an eye out for developments in these areas to determine whether or not cryptocurrency will take a jump or a dive at any given time. And be ready to hang in there for the long haul, because it seems like this technology has long-term growth potential even as it is extremely volatile in the short term.